6515--Reverse Osmosis Systems and Maintenance- Bridge

Reverse Osmosis Systems Source Selection Information IAW FAR 2.101 and 3.104. Page 2 of 2 Source Selection Information IAW FAR 2.101 and 3.104. Page 2 of 2 Justification for Other than Full and Open Competition For Reverse Osmosis (RO) Systems and Associated Maintenance Services 1. Contracting Activity: Department of Veterans Affairs (VA) Veterans Health Administration Strategic Acquisition Center 10300 Spotsylvania Avenue Suite 400 Fredericksburg, VA 22408 2. Description of Action: This proposed sole source action is for a one-year firm-fixed-priced (FFP) Indefinite-Delivery, Indefinite-Quantity contract award to Mar Cor Purification, Inc., whose current 5-year contract with the VA ends June 30, 2020, to provide Reverse Osmosis (RO) Systems and the associated maintenance services. The period of performance will consist of a six (6) month base period with one (1) 6-month option period. VHA has previously purchased the Mar Cor RO Systems for 48 medical facilities, and this contract will provide for the sustainment of existing systems as well as a short-term procurement of new systems needed for critical dialysis services, and includes installation, training, repairs and maintenance. This is a short-term solution which ensures there is a continuation of RO Systems that are maintained for VA Dialysis Centers throughout the United States until a competitive award is achieved. 3. Description of the Supplies or Services: The Department of Veterans Affairs (VA), Veterans Health Administration (VHA) requires Reverse Osmosis (RO) Systems for VA Dialysis Centers throughout the United States, including Alaska, Hawaii and Puerto Rico. The requirement includes the Reverse Osmosis System, installation, all maintenance services (including corrective and preventive maintenance), and temporary (portable) RO Systems. The RO System is one of the most important systems used during dialysis treatments for Veterans with End State Renal Disease (ESRD). A RO System purifies the water used during dialysis by dissolving inorganic solids, and removing bacteria and other infectious agents from treated city water. This critical water purification system ensures safe and effective dialysis treatment for Veterans. As noted in paragraph 2, the period of performance will consist of twelve (12) months, July 1, 2020 through June 30, 2021. The estimated value of this sole source award is $2,026,632. 4. Statutory Authority: FAR 6.302-2 Unusual and Compelling Urgency The statutory authority permitting other than full and open competition is 41 U.S.C. §3304(b)(2), as implemented by Federal Acquisition Regulation (FAR) 6.302-2, entitled Unusual and Compelling Urgency. 5. Rationale Supporting Use of Authority Cited Above: Mar Cor Purification, Inc, currently provides RO Systems and maintenance services to the VA; their systems and personnel have been utilized by the VA in the preceding 60 months. The current contract, including all options, expires on June 30, 2020. It is imperative that there be no lapse in the supply of RO Systems and maintenance services in support of ESRD treatment for our Veterans. RO services are a mandatory part of dialysis treatment for Veterans with ESRD. With the onset of COVID-19, ESRD requirements have increased across the nation. The Coronavirus pandemic has made it even more vital that there be no lapse in the supply of RO Systems and maintenance services. Mar Cor s equipment and maintenance support has proven compatible with existing VA dialysis systems and is meeting current needs; therefore, its utility and effectiveness has already been proven. Further, a vendor other than Mar Cor cannot conduct maintenance on existing RO Systems without jeopardizing active warranties. Mar Cor Purification, Inc., is uniquely positioned to provide RO Systems and Services to the VA and to do so with no risk of any lapse of services which is critical for patient safety. Proceeding with Mar Cor in this sole source action allows prudent continuation of the competitively sourced contract while mitigating potential risks of interrupted ESRD treatment. Due to these factors, FAR 6.302-2 is an acceptable authority to justify a sole source contract to the incumbent. 6. Efforts to Obtain Competition: Market research was conducted, details of which are in the Market Research document. However, it is in the best interest of the Government to remain with the current Vendor until a new acquisition can be competitively awarded to ensure no lapse in service and to avoid undue risk to patient care. An electronic Request for Information/Sources Sought Notice (SSN) identified seven potential vendors to satisfy the Reverse Osmosis Systems and associated maintenance services requirements. These seven (7) vendors included: Ameriwater, LLC; Mac Water Technologies, Inc.; Purifying Systems, Inc.; Staubach Barror Water Systems, Inc.; Marathon Medical Corporation; P K R Inc.; and, Kear Export, LLC. However, additional analysis is needed in order to determine the ability of these respondents to adequately meet requirements. At this time, Mar Cor is uniquely positioned to meet the Government s need to sustain patient care and satisfy agency requirements without risk to Veterans undergoing ESRD treatment. The proposed action will be synopsized on Contract Opportunities in accordance with FAR 5.201. 7. Fair and Reasonable Cost Determination: For this 12-month contract action, Mar Cor agreed to the already established pricing for Option Period 4 of IDIQ Contract# VA119-15-D-0005, for which the procuring Contracting Officer determination of fair and reasonable pricing was made at the time of award in 2015. The CO viewed FAR 15.404-1(b)(2)(ii), Comparison of the proposed prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items, and FAR 15.404-1(b)(2)(v), Comparison of proposed prices with independent Government cost estimates (IGCE). Determination of fair and reasonable pricing for this contract action is therefore made based on a historical pricing comparison and based upon a comparison of the price schedule for this IDIQ action with the price schedule from Option Year 4 of the current 5-year contract, which was deemed fair and reasonable at time of award (SSDD Contract VA119-15-D-0005). Current proposed prices are therefore deemed fair and reasonable based on current contracted prices for the same services. Additionally, the established pricing compares favorably with current market conditions. As a result, Mar Cor s pricing represents the best value to the Government in this IDIQ contract award. Prior to initiating any subsequent acquisitions for RO systems and maintenance services, further market research will be conducted. 8. Market Research: Market Research to date has indicated a number of interested and capable parties may be eligible for the competitively based contract. However, at this time, Mar Cor is the only source who can meet the Government s need to sustain patient care and no other Vendor s supplies or services will satisfy agency requirements without risk to Veterans undergoing ESRD dialysis. Mar Cor s equipment and maintenance support has been established widely throughout VA dialysis facilities over the past 5 years and is compatible with existing VA dialysis systems. No other vendor can conduct maintenance on the VA s existing Mar Cor RO Systems without jeopardizing active warranties. Mar Cor Purification, Inc is uniquely positioned to provide RO Systems and Services to the VA and to do so with no risk of lapse in services which is critical to patient care and safety. Robust market research will continue and it is anticipated that the new contract will be competitively awarded. 9. Other Facts: The agency and the Veterans we support will be subject to extreme harm if this requirement is not approved as award of this contract is needed to sustain VA patient care and satisfy agency requirements without risk to Veterans undergoing ESRD treatment. The extent of this harm is that potentially over 1,800 Veteran patients, approximately 300,000 treatments annually, will not be able to continue necessary ESRD treatment, threatening their health and welfare. The number of Veterans potentially impacted is expected to rise as the number requiring ESRD treatment rises with the anticipated second wave of Coronavirus pandemic infections. The VA must remain poised to continue to provide life-saving ESRD treatment to our Veterans in need. 10. Sources: An electronic Request for Information/Sources Sought Notice(eRFI/SSN) identified seven (7) potential vendors to satisfy the Reverse Osmosis Systems and associated maintenance services requirements. The following seven (7) vendors responded in writing and include: Ameriwater, LLC; Mac Water Technologies, Inc.; Purifying Systems, Inc.; Staubach Barror Water Systems, Inc.; Marathon Medical Corporation; P K R Inc.; and, Kear Export, LLC. 11. Actions to Increase Competition: Prior to initiating any subsequent acquisitions for RO systems and maintenance services, further market research will be conducted. Robust market research continues, and it is anticipated that the next contract will be competitively awarded. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition will be documented before any subsequent acquisition for the supplies or services required. 12. Technical and Requirements Certification: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief. Scott Coburn Date: ______________________ Project Manager Signature: __________________ 13. Procuring Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief. Terri Duenas Date: ______________________ Procuring Contracting Officer Signature: __________________ Approval Upon the basis of the above justification, I hereby approve, as advocate for competition for the procuring activity, the solicitation of the proposed procurement described herein using other than full and open competition, pursuant to the authority of 41 U.S.C. §3304(b)(2). Donald Jones Date: ______________________ SAC Advocate for Competition Signature: __________________